verifiable Legal Entity Identifier

About vLEI

What is a vLEI?

  • verifiable Legal Entity Identifier (vLEI) signifies an improved version of the traditional LEI, meticulously designed for digital operations. While the LEI provides a unique identifier for entities, the vLEI enhances this by introducing verifiability. Functioning as a digital passport for organizations, the vLEI encapsulates essential identity information in aformat conducive to electronic verification, guaranteeing both authenticity and precision. When discussing a verifiable digital identity for organizations, its scope extends beyond the organizational entity alone. The vLEI system includes credentials linking individuals to organizations, offering an integrated approach to digital identity verification. vLEIs ensure that the person representing a company is the appropriate match. Through secure and automated verification, vLEIs reinstate 'trust' in 'trusted partnerships.'

LEI and vLEI, what are their differences?

The inception of the Legal Entity Identifier (LEI) followed the 2008 financial crisis, offering a distinct and exclusive identifier for entities engaged in financial transactions. Although the LEI system has notably improved transparency in the financial realm, the swift advancement of digital transformation necessitated its evolution. In response to the demands of the contemporary digital ecosystem, the Verifiable LEI (vLEI) was introduced. The vLEI preserves the distinctive identification characteristics of the LEI while enhancing them with verifiability, guaranteeing the authenticity and integrity of the digital identity.

GLEIF and the vLEI Ecosystem

  • The Global Legal Entity Identifier Foundation (GLEIF) plays a pivotal role in the realm of digital identity verification. As the driving force behind the vLEI initiative, GLEIF assumes a multifaceted role, overseeingthe integrity, reliability, and global acceptance of the system.

    In the vLEI ecosystem, trust holds paramount importance.GLEIF positions itself as the "Root of Trust," ensuring that every issued vLEI adheres to rigorous global standards. By maintaining a centralized and up-to-date database of all issued vLEIs and their associated data, GLEIF ensures transparency and traceability. This centralized approach enables any entity worldwide to verify the authenticity of a vLEI with confidence.

    After establishing standards, GLEIF delegates the role of validating the authenticity and accuracy of data to Qualified vLEI Issuers(QVIs). QVIs act as a bridge between GLEIF and organizations, ensuring data integrity and issuing vLEIs, OOR vLEI credentials, and ECR vLEI credentials.

    Upon validation by QVIs, organizations receive their unique vLEIs, serving as their verifiable digital identities in the global marketplace. With the vLEI system, individuals representing organizations canbe linked to the organization's vLEI, ensuring that their authority and association with the organization can be electronically verified.

Possible uses of the vLEI

  • The vLEI, grounded in intricate technology and adhering to global standards, translates into tangible advantages and applications across diverse sectors. Its capacity to furnish a verifiable digital identity for organizations and roles within them has resulted in numerous practical applications, streamlining processes and bolstering trust in digital interactions.

    - KYC/KYB: The vLEI simplifies these processes by delivering a standardized, verifiable digital identity, reducing the time and resources required for identity verification.

    -Delegation and Representation Governance: Organizations frequently require delegation of authority or representation in various roles. The vLEI, along with associated credentials provides a transparent, verifiable method to establish and validate such delegations and representations.

    - Automating Trusted Business Transactions: The vLEI facilitates the automation of business transactions without compromising trust. Whether involving supply chain interactions, financial exchanges, orinter-organizational collaborations.

    - Document Signing and Verification: The vLEI provides a dependable method for organizations to electronically sign and verify documents. Whether dealing with contracts, agreements, or official reports, the vLEI assures the authenticity of the entity signing the document and the integrity of the content.